Kering Eyes Fifth Avenue Sale Amid Luxury Slowdown
Kering, the luxury conglomerate that owns Gucci, is in exclusive talks to sell a majority stake in its Fifth Avenue building in New York to private equity firm Ardian. This is part of Kering’s strategy to unlock capital while maintaining flagship locations through leasebacks, as the luxury market slows down and Gucci’s sales slump. The move follows similar deals, including one in Paris earlier this year, as Kering shifts focus toward brand revival and navigates a challenging retail environment.
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Kering Partners with Ardian to Refocus Strategy and Unlock Capital Through Paris Property Sale
Kering, the global luxury group owning brands like Gucci and Saint Laurent, has announced a strategic deal to sell a 60% stake in three iconic Paris properties to private equity firm Ardian for €837 million. This move aims to unlock capital amidst challenges in enhancing Gucci’s performance, which is crucial for Kering’s profitability. Retaining a 40% stake and operational control over the properties allows Kering to secure long-term benefits from these prime locations while improving financial flexibility. This strategic realignment comes as Kering faces intense competition and seeks to reinvigorate its brand offerings to attract more affluent consumers.
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